There are countless currencies, and even more ways to buy and sell them. So how to start? We had an expert weigh it.
Cryptocurrency has conquered Australia.
More than 20 percent of adults across the country are believed to own some form of crypto, and the ups and downs in the market often make for big news.
But with so many options to invest in coins and wallets to trade, it’s hard to know how to get started.
Comparison website Finder has crunched the numbers to find the best of the best exchanges, with the aim of making the high-tech currency accessible to ordinary Australians.
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an exchange is a platform where you can buy and sell cryptocurrencies. They can be used to buy cryptocurrencies with regular currency or convert them back to a dollar value; essentially, they reflect the market price of cryptocurrencies.
But, just like currencies, there are hundreds of exchanges; some fantastic and legitimate, and others… not so much.
The best exchange for beginners.
Crypto expert James Edwards is one of many who have reaped the rewards of the new technology.
You bought half a Bitcoin in 2014 for around $350, that same amount of Crypto is now worth around $30,000.
The self-described ‘nerd’ now works researching cryptocurrencies for Finder, which he has designed a reward system to help simplify the information for those who just want to learn more about coins.
According to the review site, Crypto.com was rated as the best exchange for beginners.
“The awards were based on a variety of criteria rather than someone or a few people just choosing. For example, Crypto.com scored highly because it has a good smartphone app, it’s easy to use, good customer support and you can set up recurring payments,” he told news.com.au.
“Another thing we wanted to do was only classify companies that are registered with AUSTRAC.”
Binance won three awards, including Exchange for features Y Exchange for altcoins, as well as the award for Australian Cryptocurrency Exchange (General).
crypto.com won the category ‘Exchange for Beginneryes, while kraken livestock ‘Exchange for trade’.
Meanwhile, the award ‘Exchange for value’ I went to digital surgewith CoinJar Y crypto.com a close second.
How to invest in cryptocurrency
Mr. Edwards recommends that those looking to dive into Crypto should try dollar cost averaging as their investment strategy.
In theory, this method helps prevent massive ups and downs of the sometimes volatile currencies.
“To do this, you need to set aside a certain amount of money and invest it at the same time each week. For example, you pick a time on a Friday morning when you invest $50 worth of coins,” he said.
“This helps take the emotion out of your investments, since it’s something you do every week. But it really only works by removing any market-related moments, you’re not chasing the lows.”
In which cryptocurrency to invest?
With thousands, if not millions, of cryptocurrencies on the market, it can be intimidating to get started.
The most popular coins are Bitcoin, Ethereum, Tether and Binance, which are a solid starting point for your investments.
Mr. Edwards identified Ethereum as a popular first choice among many investors, after Bitcoin.
“Ethereum is good because it can be described as a layer of the internet, not just a currency. Ethereum is a popular first choice among many investors, after Bitcoin,” he said.
“The next, or last, version of the Internet is called Web 3. This will be based on things like Eth. Crypto can contain computer code and it creates this hyper-secure layer that was previously very difficult on the internet.
“The security layer allows people to be confident with finance and financial services.”
He added beware of things that are too good to be true.
“For people just starting out, the best thing to do is read and learn from trusted sources. What is really important is to see who is providing the information and if they are influencers or have something to gain from buying your product,” she said.
Finder’s head of consumer research Graham Cooke said Australia’s enthusiasm for cryptocurrencies has fueled its growth.
“Cryptocurrency awareness in Australia is among the highest in the world. 85 percent of Australians say they know what cryptocurrency is, far more than countries like the United States (59 percent) and the United Kingdom (55 percent),” she said.
Comes as ‘meme coin’ Shiba Inu rockets in value.
The surge comes amid a broad rally in cryptocurrencies with Bitcoin rising to just under $44,000 (Aus$61,000) and Ether price now at $3,100 (Aus$4,300).
SHIB tokens rose to $0.0000342 from $0.000022 last day, while Dogecoin jumped to $0.1661 from $0.145. Both SHIB and Dogecoin were based on popular internet memes.
The move caused nearly $10 million in liquidation losses for traders of SHIB-tracked futures products, according to Coin Desk.
After becoming one of the dominant meme coins of 2021, the value of the Shiba Inu had been trending down for the most part since late October.
On October 28 last year, Shiba reached an all-time high of $0.00008845.